Category Name | Description | Gross Amount |
---|---|---|
Lower Earnings Limit (LEL) | If you pay your employee below this amount they will not be entitled to any state pensions or benefits. If this is the employee's only job you are not required to register with HMRC. | £113 per week or less £490 per month or less £5,876 per year or less |
Group between the LEL and National Insurance Threshold | If you pay your employee between these amounts and it is their only job you will not pay tax or national insurance. The employee will be entitled to state pension and benefits. You are required to register with HMRC. | £113 up to £157 per week £490 up to £680 per month £5,876 up to £8,164 per year |
Primary and Secondary Thresholds | If you pay your employee this amount, tax and employee's national insurance must be deducted and paid to HMRC along with employer's national insurance. National insurance contributions will vary depending on whether the amount is within the primary or secondary threshold. You are required to register with HMRC. | £157 up to £866 per week £680 up to £3,750 per month £8,164 per year |
Employee Personal Allowance | This is the amount set by the government each tax year that the employee can earn before they start paying tax. This tax year the standard code is 1150L. | £221 per week £958 per month £11,500 per year |
Upper Secondary, Apprentice Upper Secondary and Upper Earnings Limit Thresholds | If you pay your employee this amount, tax and employee's national insurance must be deducted and paid to HMRC along with employer's national insurance. National insurance contributions will vary depending on each category. You are required to register with HMRC. | £866 or more per week £3,750 or more per month £45,000 or more per year |
Category of Worker | Gross per Hour Rate |
---|---|
Aged 25 and above (national living wage rate) | £7.50 |
Aged 21 to 24 inclusive | £7.05 |
Aged 18 to 20 inclusive | £5.60 |
Aged under 18 (but above compulsory school leaving age) | £4.05 |
Apprentices aged under 19 or over but in the first year of their apprenticeship | £3.50 |
Plan 1 Is for English and Welsh students who started before 1st September 2012 and all Scottish and Northern Irish students | Threshold Amount £341 per week £1,481 per month £17,775 per year |
Plan 2 Is for English and Welsh students who started on or after 1st September 2012. | Threshold Amount £403 per week £1,750 per month £21,000 per year |
Student loan deductions for both plans: | 9% is paid back over threshold. |
Aged 22 or less | 0.5 week's pay for each full year or £244.50; whichever is lower |
Aged 22 up to 41 | 1 week's pay for each full year or £489; whichever is lower |
Aged 41 or more | 1.5 week's pay for each full year or £733.50; whichever is lower |